AmEx Plunge Drains $1 Billion From Buffett Holding in Day: Chartby and
Warren Buffett’s Berkshire Hathaway Inc. saw more than $1 billion of gains vanish on his American Express Co. investment Friday as the credit-card issuer plunged after posting a decline in fourth-quarter profit.
Berkshire is AmEx’s largest holder, with a 151.6 million-share stake. The lender fell $8.02, or 13 percent, to $54.62 at 11:46 a.m. in New York, dropping the value of Buffett’s investment to about $8.3 billion, compared with more than $14 billion at the end of 2014. AmEx has tumbled over the last year as the company parted ways with its biggest co-brand partner, Costco Wholesale Corp., and suffered a loss in an antitrust case that permits merchants to steer customers to cheaper forms of payment. Still, Buffett is sitting on a huge gain. He accumulated the holding at a cost of about $1.28 billion, and has collected dividends for years.